Jumia Nigeria Assignment 1
Use the PESTEL analysis method explained below to answer the following question shown below.
There are three steps in the PESTEL analysis.
First, consider the relevance of each of the PESTEL factors to your context.
Next, identify and categorize the information that applies to these factors.
Finally, analyze the data and draw conclusions. Common mistakes in this analysis include stopping at the second step or assuming that the initial analysis and conclusions are correct without testing the assumptions and investigating alternative scenarios.
The framework for PESTEL analysis is presented below. It’s composed of six sections—one for each of the PESTEL headings.
PESTEL Analysis
1. Political – How stable is the political environment in the prospective country?
What are the local taxation policies? How do these affect your business?
Is the government involved in trading agreements, such as the European Union (EU), the North American Free Trade Agreement (NAFTA), or the Association of Southeast Asian Nations (ASEAN)?
What are the country’s foreign-trade regulations?
What are the country’s social-welfare policies?
2. Economic – What are the current and forecast interest rates?
What is the current level of inflation in the prospective country? What is it forecast to be? How does this affect the possible growth of your market?
What are local employment levels per capita, and how are they changing?
What are the long-term prospects for the country’s economy, gross domestic product (GDP) per capita, and other economic factors?
What are the current exchange rates between critical markets, and how will they affect production and distribution of your goods?
3. Sociocultural – What are the local lifestyle trends?
What are the country’s current demographics, and how are they changing?
What is the level and distribution of education and income?
What are the dominant local religions, and what influence do they have on consumer attitudes and opinions?
What is the level of consumerism, and what are the popular attitudes toward it?
What pending legislation could affect corporate social policies (e.g., domestic-partner benefits or maternity and paternity leave)?
What are the attitudes toward work and leisure?
4. Technological – To what level do the local government and industry fund research, and are those levels changing?
What is the local government’s and industry’s level of interest and focus on technology?
How mature is the technology?
What is the status of intellectual property issues in the local environment?
Are potentially disruptive technologies in adjacent industries creeping in at the edges of the focal industry?
5. Environmental – What are the local environmental issues?
Are there any pending ecological or environmental issues relevant to your industry?
How do the activities of international activist groups (e.g., Greenpeace, Earth First!, and People for the Ethical Treatment of Animals [PETA]) affect your business?
Are there environmental-protection laws?
What are the regulations regarding waste disposal and energy consumption?
6. Legal
What are the local government’s regulations regarding monopolies and private property?
Does intellectual property have legal protections?
Are there relevant consumer laws?
What is the status of employment, health and safety, and product safety laws?
Now that you have reviewed Jumia-Nigeria case study and the various components of PESTEL Analysis, answer the following question.
Using the PESTEL analysis explain the macroeconomic conditions that influence the marketplace industry?
Your answer must include references and explain the components of the PESTEL analysis and tie these to the challenges provided in the Jumia case.
Though there is no specified length for this analysis, however, you need to use APA 7 format and citations and sources. A typical answer can include your opening statements, rationale, a table, a narrative and a conclusion.
Recommended length is 300 to 500 words including a table.
Jumia Nigeria Assignment 2
What is Jumia’s Nigeria’s path to profitability? Would you invest in this company? Why? or Why not? Explain your answer and provide references and sources.
Use APA 7 format.
